Lawsuit targets Kodak's board, executives

An Eastman Kodak Co. employee has filed a federal lawsuit claiming company officials breached their fiduciary duties related to their oversight of the troubled company’s Employee Stock Ownership Plan and Employees’ Savings and Investment Plan.

The lawsuit was filed Friday in U.S. District Court in Rochester. It names Kodak’s Chairman and CEO Antonio Perez, its board of directors and other past and current officials as defendants.

The case was filed on behalf of Mark Gedek, an employee of Kodak and participant of the two plans, the court complaint states. The case also is seeking class-action status to cover all Kodak workers who took part in those investment plans since Jan. 1, 2010.

The complaint alleges Kodak leaders breached their fiduciary duties by failing to prudently and loyally manage the plans’ investment in company common stock. Those officials continued to offer Kodak stock as an option and failed to provide complete and accurate information to participants regarding the company’s dire financial conditions, the complaint adds. The defendants also maintained the plans’ pre-existing heavy investment in Kodak’s equity.

Further, defendants failed to take action to protect the plans or its participants from inevitable losses, the complaint states.

A Kodak spokesman said the company believes the lawsuit is without merit and “we intend to “vigorously defend ourselves.”